A STUDY ON PORTFOLIO ANALYSIS

AND STRATEGIC PERSPECTIVE OF

KINGFISHER BEER

Group No.2
Praveen Kumar (035)
Gagan Kasliwal (078)
Sneha Keshan (084)
Ashmita Goyal (089)
Abhijeet Akash (092)
Jitendra Kumar Gupta (116)
EXECUTIVE SUMARY
The present report is a unique effort to highlight the exuberance and achievements of the United
Breweries Ltd., a inimitable company, and the report, in a nutshell, has tried to give glimpse on the
company position, the industry analysis, comparative status, portfolio of its products Its core
competency, value chain etc.
The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group took its initial
lessons in manufacturing beer from South Indian based British breweries. United Breweries made its
initial impact by manufacturing bulk beer for the British troops, which was transported in huge barrels
or "Hogsheads". At the age of 22, Vittal Mallya was elected as the company's first Indian director in
1947. After a year, he replaced R G N Price as the chairman of the company. Kingfisher, the Group's
most visible and profitable brand, made a modest entry in the sixties.
With currently into business of Spirits (United Spirits Ltd.), Wine, Beer (United breweries Ltd.),
Engineering (UB Engineering Limited), Fertilizers (Mangalore Chemicals and Fertilizers) company has
made its mark and presence in each sector it is in.
United Breweries Limited (UBL) - has assumed undisputed market leadership with a national
market share in excess of 50%. Through a process of aggressive acquisition and market penetration, The
UB Group today controls 60% of the total manufacturing capacity for Beer in India. The flagship brand,
Kingfisher is now sold in over 52 countries worldwide having received many accolades for its quality.
As an economic force, India is believed to hold the potential to grow faster than any other BRIC country
over the next thirty to fifty years. The sub-continent’s Beer market has been equally dynamic, growing
by almost 90% since the turn of the Century. Exceptionally high growth was generated in the northern
states of Punjab, Haryana and Rajasthan which took full advantage of reduced taxes and improvements
in the distribution policy. In contrast to Russia, consumers are displaying a distinct preference for Strong
Beer which has gained market share steadily in recent years and now accounts for almost 70% of total
volume. Kingfisher Strong replaced Kingfisher Premium as the leading Beer and the Kingfisher brand
overall now holds a commanding position.
MARKETING MYOPIA
It is Narrow-minded approach to a marketing situation where only short-range goals are considered or
where the marketing focuses on only one aspect out of many possible marketing attributes. Because of
its shortsightedness, marketing myopia is an inefficient marketing approach. According to Theodore
Levitt company should have a radar view rather than tunnel view to its business and when we talk of
UBL it is not at all myopic because it has foot falls not just in breweries industry by products like
distilleries, beer , wines, but has also entered into airlines, footwear, fashion, apparels, sports.
Company’s brand KINGFISHER is not new to any one and has showed its presence in every sector it is in.
Company has also gone for backward integration and has various collaborations and JV’s with suppliers.

COST COMPONENT
One of the most and well reckoned step that UBL has taken in order to reduce the rising cost and
decreasing prodution (Appendix) of raw material barley over the year. Higher prices and short supply of
key raw materials like malt, hops and barley can reduce the profit margin and affect Any price increase
in this two commodities have a direct bearing in reducing the overall operating margin. Due to price
increase of barley by over 33% and increase in bottling cost, during FY2008 the net profit margin fell by
26%. In states like Uttar Pradesh, Rajasthan and Madhya Pradesh which, account for 80.34% of barley
production in India, the area under cultivation is shifting to other crops like sugarcane. As can be seen in
the adjoining diagram, the barley production has declined by over 60% from 3135 KMT to 1220KMT
from 1975 to 2005. To hedge the risk on rising raw material prices, UBL has entered into long term
arrangements for sourcing of the vital inputs. In addition it has extended its own contract farming
initiatives in the state of Punjab. The 51% Equity stake in Maltex Malsters Limited, a manufacturer of
malt, is also an initiative for vertical integration.

INDUSTRY
The Indian beer industry has been witnessing steady growth of 10 - 17% per year over the last ten years.
The rate of growth has increased in recent years, with volumes passing 170m cases during the 2008-
2009 financial year. With the average age of the population on the decrease and income levels on the
increase, the popularity of beer in the country continues to rise.
In modern times, beer began to be exported to India in the early days of the British
Empire — the early 1700s. The first modern brewery in India was set up in Kasauli, in the Himalaya
mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer . The Indian beer industry has
witnessed a big change during the last five years. The industry was previously dominated by competition
between the Vijay Mallya-controlled United Breweries Group and the Manu Chabbria-controlled Shaw
Wallace. The scenario changed, however, with the entry of SABMiller in India. The international beer
giant started by acquiring small breweries in the south but then completely changed the landscape with
the acquisition of Shaw Wallace’s beer portfolio for a reported US$264m in 2003. This gave SABMiller
ownership of strong brands like Haywards 5000, along with its existing brands. After the acquisition,
SABMiller focused on spreading its footprint across India, including opening new breweries in states
where Shaw Wallace did not have a presence.
In 2008, beer prices saw steep hikes in key beer consuming states. Consumers’ reactions
to the price hikes saw many cut back on consumption, which adversely affected sales growth. Excessive
regulation and further extensions of government intervention, in the areas of distribution and pricing, is
affecting the growth and profitability of the industry as well as restricting government revenues. In
addition, restrictions on advertising and licensing of retail outlets continue to present challenges to the
Industry.
The Indian beer industry is plagued with a myriad of taxes & levies that vary from state
to state. These along with price regulation, inadequate market infrastructure and restrictions in
interstate movement of beer, pose a great challenge for the industry. Unlike most developed countries
where beer is less regulated and available freely, high level of regulation and higher end consumer price
hampers beer sales in India. Uniform tax regime for beer in all states will be a boon for the industry. If
implemented, it will help the beer industry by rationalizing end consumer prices in all states, as is in the
case of other consumer goods. In addition to economic contribution, a uniform tax structure will also
create increased agro linkages that are beneficial to a country like India. It is important to realize that
the beer sector can contribute immensely to the agricultural sector, as beer is an agro-based product.
Also marginal barley farmers, particularly stand to benefit from the growth of the beer sector.

BOSTON CONSULTANCY GROUP MATRIX (BCG MATRIX)

It is a widely used portfolio management method for evaluating the performance of business units.
There are four quadrants in a BCG matrix: question marks, stars, cash cows and dogs. On the X axis,
market growth is measured, which indicates the level of market attractiveness On the Y axis, market
share is measured, that serves as a measure of the company's strength in the market

STAR
Stars are high-growth, high-share businesses. Very often, they need heavy investment for financing their
rapid growth. Eventually, their growth slows down and they turn into cash cows.

 TAJMAHAL BEER:- Taj Mahal Premium Lager beer is prepared with finest malt made at
United Brewery own malt house using premium quality barley. It has a distinct aroma
and unique taste. The demand of this beer is mainly in abroad (australia, france, usa) as
it is premium priced and have bitter taste which is not liked much in india though it is
served in some premier hotels in india. The demand outside is very good and it accounts
for good market share in the exported beer in india.
  KINGFISHER STRONG:- spectacular growth of 36% is seen in strong beer (against a
market growth of 16%) was witnessed. Kingfisher Strong has now achieved the number
one position in the strong beer segment.

CASH COW
Cash cows are low-growth and high-share businesses. Such established and successful business lines
require less investment to maintain their market share. They generate a lot of surplus that a company
can use to pay its bills, or invest in other businesses.
 KINGFISHER LAGER BEER:- it has witnessed a market growth of 13% in comparison to
the lager beer industry growth of 9.4%.in the lager beer segment, UBL is the market
leader in all the 10 largest states of the Country. UBL commands a market share of
around 40% with 67% of the market share in the lager beer segment.

QUESTION MARK
Question marks are low-share business units, in a high-growth market. They require a lot of cash, for
maintaining the market share. Any business has to think between building a question mark into stars or
whether they have to be phased out

 LONDON PILSNER:- it has witnessed a market growth of more than 20% and targeting a
market share of 15% . (Indiantelevision.com)
  KINGFISHER DRAUGHT:- this beer has less water in comparison to other beer type. it
has good market growth as it is proving success in its 2nd year still the market share is
less. (thaiindian.com)
 KINGFISHER BLUE:- this is launched around 8-9 months before to tap those customer
who wants less alcoholic beer in comparison to strong beer but more than mild. It has
around 6% alcohol content. Since it has launched sometime before hence the market
share occupied is less as strong beer and lager beer segment is increasing very fast
however market growth rate main up.

DOG
Dogs are low-growth and low-share businesses. They may generate enough surplus to maintain
themselves, but do not hold out the promise to be a large source of cash.
 UB ICE BEER:- this beer is launched for trendy people in 330ml can.It was different from
the traditional lager beer as it was made using a unique refrigeration process which
involves the formation of ice crystals which were filtered out giving the brew a crisp,
clear and strong taste. It did’nt got good response as it has very low market growth
instead people are drinking more the lager and strong beer.
 KALYANI BLACK LABLE:- one of the oldest brand launched in 1969. It has low market
share as it is only popular in east india and it assumed to be economical . the market
growth for this brand is not good as people are shifting towards other beers such as
London pilsner which is also economical brand.

ANSOFF MATRIX
To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on the
firm's present and potential products and markets (customers). By considering ways to grow via existing
products and new products, and in existing markets and new markets, there are four possible product-
market combinations.

MARKET PENETRATION
The firm seeks to achieve growth with existing products in their current market segments, aiming to
increase its market share.

 KINGFISHER LAGER PREMIUM:- it has witnessed a market growth of 13% in comparison

to the lager beer industry growth of 9.4%.in the lager beer segment, UBL is doing
market penetration in all the places by promoting the beer in every state. UBL
commands a market share of around 40% with 67% of the market share in the lager
beer segment.
  KINGFISHER STRONG:- The company is investing much in this product and also the
customers are increasing due to the more alcoholic content and it has registered
spectacular growth of 36% in strong beer (against a market growth of 16%) was
witnessed.

MARKET DEVELOPMENT
The firm seeks growth by targeting its existing products to new market segments.

 TAJMAHAL :- This beer is made mostly for export purpose and contain less alcoholic content
though the taste is unique due to its bitterness. The demand of this beer is mainly in abroad
(australia, france, usa) as it is premium priced and have bitter taste which is not liked much in
india though it is served in some premier hotels in india.
 LONDON PILSNER:- this beer mainly aims lower income group as it is economical beer and this
beer contain less alcoholic content hence catering to all together different segment.
PRODUCT DEVELOPMENT
The firms develops new products targeted to its existing market segments.

 KINGFISHER DRAUGHT:- this beer contain less amount of water and comes in 500ml
can. Hence creating a new product in existing market
 KINGFISHER BLUE:- this is launched around 8-9 months before to tap those customer
who wants less alcoholic beer in comparison to strong beer but more than mild. It has
around 6% alcohol content. It is also done to create a new product.
 KINGFISHER BOHEMIA:- Kingfisher- the brand that has been synonymous with providing
a "good time" to consumers have launched their own brand of wines in India -
"Kingfisher Bohemia". It is launched in 2008 to get the wider reach in the alcoholic drink
market.
 KINGFISHER ULTRA:- This will be launched within some months. It is a new drink having
sweetness in it.

DIVERSIFICATION
This resulted in the company entering new markets where it had no presence before

 KINGFISHER LEISURE WEAR:- kingfisher is diversified in the leisurewear segment extending itself
in the path of providing good time to customers.
 KINGFISHER AIRLINES:- kingfisher airlines had becomes a very well known company in itself.this
is a full-fledged carrier providing comfort to its fliers.
 KINGFISHER SWIMSUIT CALENDAR:- kingfisher also launch its annual swimsuit calendar which is
the second costliest calendar in the world.
 SPORTS:- kingfisher also diversified in various sports Current such as in Formula 1, Rugby and
Football.

PORTER’S FIVE FORCE MODEL

This model is developed by Michael Porter, this model analyzes the nature and intensity of competition
in an industry through five forces (rivalry, customers, supplier, new entrants, and substitutes). These five
forces are explained as below:-
BARGAINING POWER OF SUPPLIERS:- With increasing cost of raw material and decreasing cost of barley
suppliers bargaining power was high but with backward integration by acquiring Maltex Malsters Ltd.
And shifting their production of beer on malt company has achieved a hold on its raw material and
considerable reduced the supplier strenth and dependency. Company has aslo collaborated with
Government of pujab and haryana for supply of iits raw material.
RIVALRY:- Rivalry is the means through which competitors fight for position by using tactics such as
price, competition, advertisement battles, and new product introduction, to lower the profits of
competitors in the industry.
A CAGR of 11% is expected for beer in the next 5 years many MNcs are eyeing the Indian
market. Currently the major rivalry for kingfisher premium is Budweiser, Carlsberg, Foster and Tiger and
for kingfisher strong it’s Hayward 2000, Hayward 5000, Palone. SABMiller’s who came to India by
acquiring small breweries and made its hold as Best-selling strong beer brand but still kingfisher being
Largest-selling strong beer brand (29%market share) is currently being supplied in 55 country. There are
also some small local players that are in the market but does not provide much threat to kingfisher.
THREAT OF NEW ENTRANCE:- Beer industry is in Growth phase with 11% CAGR, so it is attractive for the
new players. But strong brands like kingfisher and haywards which already have their brand recall and
extensive advertisement new entrants are expected to struggle to expand their consumer base as they
try to penetrate the beer market in India. Foreign brewers have been eyeing the Indian market for some
years now as India is widely acknowledged to be the last untapped big growth market Several
international brewers have currently built brand associations and are marketing their brands
aggressively through various point-of-sale promotions throughout their distribution networks. But with
strong players in the market the new entrant will face problems of
a) Economies of scale For example benefit associated with bulk purchases and sales
b) Cost of entry For example investment in technology
c) Distribution channel For example ease of access for competitors
d) Government Legislations introduction of new laws might weaken companies position
e) Differentiation For example certain brands that cannot be copied
f) Supplier power Possibility of forward integration by supplier

BARGAINING POWER OF CUSTOMERS:- It is the extent to which customers are successful in forcing
prices down, or securing high quality or more service at the same price. Customers tend to be powerful
when the quantities they purchase form a large portion of the seller's total sales. Buyer do not
understand the quality of the beverages and as there are not many players in the market the customer
has less command over price.
THREAT OF SUBSTITUTE:- India is predominantly a spirits market and beer is a minority preference for
those who consume beverage alcohol. So substitute is biggest threat as preference for beer among
beverage drinker is less but the low penetration in beer consumption in comparison to international
levels offers the expectation of substantial and sustainable growth in demand for beer in years to come,
particularly given the youthful age of India’s population.

MICHAEL PORTER’S VALUE CHAIN

PRIMARY ACTIVITIES
INBOUND LOGISTICS:- Beer is brewed in either the company’s owned or non-owned Breweries, with
certain Breweries set up for certain functions. This also reduces the cost and there is less treat of the
suppliers. The company also has its franchise for the production of the beer. The best example is of the
Taloja plant situated in Mumbai. The experience of Kingfisher brand since 1915 adds to the experience
and efficiency of the firm. The is thing is also very clear from its balance sheet as the EBITDA of United
Breweries is 2675.2 Millions which is 35.61% more than previous year (2007-2008). The owned plant
also has reduced the switching cost of the suppliers of Kingfisher. Higher prices and short supply of key
raw materials like malt, hops and barley can reduce the profit margin and affect operations. Barley and
glass bottles constitute 12% and 40% of the total operating expense of UBL. Any price increase in this
two commodity has a direct bearing in reducing the overall operating margin. Due to price increase of
barley by over 33% and increase in bottling cost, during FY2008 the net profit margin fell by 26%.[10] In
states like Uttar Pradesh, Rajasthan and Madhya Pradesh which, account for 80.34% of barley
production in India, the area under cultivation is shifting to other crops like sugarcane. The barley
production has declined by over 60% from 3135 KMT to 1220 KMT from 1975 to 2005. To hedge the risk
on rising raw material prices, UBL has entered into long term arrangements for sourcing of the vital
inputs. In addition it has extended its own contract farming initiatives in the state of Punjab. The 51%
Equity stake in Maltex Malsters Limited, a manufacturer of malt, is also an initiative for vertical
integration and excellence in inbound logistics.

OPERATIONS:- Quality and hygiene are the key elements of the United Breweries'
manufacturing philosophy. To this end, the Central Scientific Laboratory (CSL), headquartered at
Bangalore sets standards for all its breweries. Quality Management Systems laid out along the
lines of ISO 9000 are strictly adhered to, controlling quality at every stage of production, from
raw materials to the end product. Also, besides controlling the production process, the CSL
analyses the Company's beer taken off market shelves all over the Country, the competition's
beers and beers across the world. These beers are tested as per the standards laid down by the
European Brewery Convention on 40 different parameters. By these standards, United
Breweries' beers don't just equal, but even surpass, several Dutch and American beers.
OUTBOUND LOGISTICS:- No internal distribution/Use third party to distribute product. The
channel is very strong. As we know alcohol is a state subject in India and hence each state has it
own taxation, pricing and distribution policies. No inter state movement of alcohol is allowed.
Also since beer is not delinked from other spirits it is heavily taxed at over 42%. Since tax on
alcohol contributes to over 17% of state revenues, the government is hesitant to change the tax
treatment. Any further increase in taxation on beer would shift consumer preference towards
other alcohol products thereby reducing the demand for beer. In states of Delhi, Andhra
Pradesh, Karnataka, Tamil Nadu and Kerala government controls the distribution of
alcohol. Whereas in states of Rajasthan, Bihar and Himachal Pradesh auction based distribution
is used. Reforms in the distribution system in these states would increase the competitiveness in
the market and lead to increased sales as was demonstrated by the 400% increase in beer sales
in the states of Punjab and Haryana after the distribution reforms in July 2008. It has also
 lowered the barriers to entry present in the industry and thus brings a more competitive
environment in the industry. But the quality and its channel is so strong that it doesn’t find any
threat from the new entrance. The corporate strategy of kingfisher to demonstrate the
complete plant to any of the distributer reaching the plant has improved the brand loyalty and
increase the switching cost for the users. It has a network of 23 distilleries across the country to
meet the requirements at the regional level giving it an unparalleled distribution reach within
India.

MARKETING/SALES:- Lot of focus on quality marketing as well trained sales force to sell the
product in India is carried by the Brand. Vijay Mallya, the flamboyant CEO of United Breweries -
the company that owns the Kingfisher brand - is one of the most flamboyant CEOs in Asia. Vijay
Mallya believes in leading his brand from the front by leveraging his personality. Vijay Mallya is
referred to as India's Richard Branson. A great part of the personality of the Kingfisher brand is
based on Mallya's personality. He is credited with having single handedly changed the image of
his beer brand from a commodity to a lifestyle brand. Hence he carry so strong brand marketing
that it is said that at every second 4 bottles of Kingfisher bottles are sold. Sales force is trained
and highly experienced.

SUPPORT ACTIVITIES
PROCUREMENT:- Choose high quality ingredients to ensure higher quality end result. Heavy
reliance on this process.
TECHNOLOGICAL:- In technology advancement they have automated the complete plant in 2000
by the Allen Bradley system. This has considerably reduced the cost and increase the rate of
production. The cycle time is reduced to half of the previous statistics.
INFRASTRUCTURE:- Very strong management with a good understanding for competition and
zeal for staying on top of industry. Its infrastructure is good as it is backed by the parent brand
of UB Groups.

PORTERS GENERIC STRATEGY

Companies can achieve competitive advantages essentially by differentiating their products and
services from those of competitors and through low costs. Firms can target their products by a
broad target, thereby covering most of the marketplace, or they can focus on a narrow target in
the market. According to Porter, there are three generic strategies that a company can
undertake to attain competitive advantage: cost leadership, differentiation, and focus.
Kingfisher is following a differentiated strategy by introducing a product range in all the
categories like premium beer, mild beer and strong beer cater to all the segments in the market. They
also differentiated their product through marketing their product by associating their brand with major
events, like sponsored West Indies team in world cup 1996 by showing a spirit of team, IPL, east Bengal
football club, Mumbai marathon, Bangalore open. With the company target to youth segment it also
used the focus strategy by associating with events that youth likes such as Formula one race where it
showed and given the brand a sense of excitement and a sense of thrill. Various sports club of
kingfishers are sponsor by youth brands like Reebok, Nike etc. They have also introduced products
specific to region like, kalyani black in eastern india, UB exports is famous in Karnataka in order to focus
on their customers.

GE MATRIX

STRONG-HIGH
UNITED SPIRITS LIMITED:- With considering the fact that the Spirits market is growing at a rate of 20%
and United spirits have also shown a remarkable growth of 20% by volume. This is a strong area for the
company and company should invest and grow in it
UNITED BEVERAGE LIMITED:- Largest in India with a market share of 50%. Beer Market is also showing
a growth pace of 10-12% and the industry is projected to grow between 15% to 18% in the next two
years.
 The regulatory framework across key markets in India is undergoing a progressive change.
 The liberalization of policy is expected to result in an increase in retail outlets as well as
rationalization of pricing.
KINGFISHER AIRLINES:- Kingfisher Airlines is No. 1 airline in India with a market share of 27.1%
(December 2008). Nearest competitor airline is at 16.8% (Jet & Jetlite together have 24.4%).

The CAGR of market growth from FY 2004 to FY 2008 has been 31%. Whilst market growth YoY dropped
from FY 2007 to FY 2008, Indian airlines industry has shown a growth of 18% per annum, the reduction
has been primarily on account of unmanageable ATF price increase leading to increase in fares.
Reduction in ATF prices resulting in reduced fares (implemented end Dec 08 and Jan 09) will bring back
customers to air travel

MEDIUM-MEDIUM
UB ENGINEERING LIMITED:- UEL UB Engineering is a engineering and construction company catering to
cross section of industries in power, steel, cement and petrochemical sectors With a recessionary
condition in the market there is a medium growth seen while company has shown triple digit growth in
profit.
MANGALORE CHEMICALS & FERTILIZERS LIMITED:- Only Fertilizer plant in Karnataka, with a dealer
network of 2530 in South India and a well established brand “MANGALA”. With fertilizer industry
showing a medium growth of 10-12% the company is also on growth path.

Fe rtilize rs ,
15%
Engine e rin Be e r , 17%
g , 3%
Airline s ,
6%

Spir its , 59%

SWOT ANALYSIS

STRENGTHS
 Strongest Worldwide Distribution System
 Huge Finances backing from UB Group
 Oldest & Largest Player In India
 Worldwide known Brand

WEAKNESS
 High Concentration on Strong Beer Market .
 Too much diversified.

OPPORTUNITIES
 Beer consumption is increasing
 Per capita beer consumption in India - 0.5 litres which is very low
 Brand Extension Benefits
  Changing lifestyles of middle class
 Increase in disposable income

THREATS
 High Taxes & Regulations
 Prohibition on Advertising
 Indian Culture is a Major Hindrance
 Negative perceptions about alcoholic beverages widely prevalent
 Many International Player Entering In India
 This is a ‘regulated’ industry

COMPETITIVE ADVANTAGE
 MANAGEMENT TEAM
Professional Managed
Seasoned Professionals with Significant Industry Experience
 SEGMENT MARKET PRESENCE
Least Vulnerable to Policy Volatility due to Large Spread
 LOCAL SOURCING
 OPTIMAL, AS ALMOST COMPLETELY LOCALLY SOURCED
 MANUFACTURING TECHNOLOGY
Largest Manufacturing Space
Maximum Capital Utilization
 BRANDING
Strongest Brand
Significant Up gradation
Value Chain Ownership
Initiatives Planned for Integrating into Retailing
 CORE COMPETENCY
Strong brand image with continuous innovation and technology along
with good marketing and distribution channel are the core strength of the company

FUTURE GROWTH
In India the future of beer industry is very much optimistic because:

1. India has predominantly a warm/hot climate

2. The beer-drinkers in the country are much younger than the average beer-drinker
elsewhere in the world. This makes them more likely to carry the brand with them for a
lifetime.
3. Increasing exposure to beer and wine drinking, mainly due to media and consumer
mobility.
All these factors combined make the scenario very promising for beer industry and
are 'in sync' with their strategy for India.
LEARNINGS

 Acquisition, Strategic alliance, joint ventures are important strategies to

sustain in the market, if there are large number of small players, threat of
foreign company entry.
 Diversification and innovation are the key drivers for tapping the market.
 Vertical integration helps to sustain in the market if production of raw
material decreases and cost increases.
 The concept of umbrella branding is used consistently and successfully by
kingfisher e.g. Kingfisher beer, Kingfisher fly.
 The industry analysis by five forces is an excellent tool one should use for
understanding the market.

APPENDIX